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My Investment Philosophy and Methodology
My main objective for this blog is to make you money. You’ll see that I don’t adhere to one specific investing strategy. In 20 years of stock-picking I’ve learned that the way to make money consistently over the long-term is by diversifying across sectors and employing a range of strategies. That’s why a secondary aim for this blog is to offer stock ideas that can serve many different of goals.
I think your portfolio should contain a mix of high-octane growth stocks and inexpensive, low-risk value stocks. Many of my picks are for dividend seekers who know that there are two ways to make money --- from the dividend payout and from the stock going up in price. Sometimes it makes sense to buy a stock one day and sell it the next. Other stocks you’ll want to buy and hold for years
Often my initial idea for a stock pick comes from chatting with another financial professional, reading an article, or noting a new trend as I go about my day. I am always asking, learning and discovering new stocks. I follow up on new ideas with painstaking research that involves reading up on the industry, delving into a company’s financials, and bouncing the name off industry sources. I often turn to my colleagues who are technical analysts and we compare notes on when to get in – or out of – certain stocks given factors such as price action and trading volume.
All of my stock selections differ in their timing and risk profile, so I always try to highlight the type of stock I am suggesting. Of course, sometimes I will suggest you buy a stock that may later have unexpected bad news. That’s is why you must only invest money that you deem "risk capital" -- that means money that you can afford to lose.
I am compelled to write this daily blog because so often I hear gurus making recommendations that I know are not based on a well-rounded perspective. Sometimes an investment pro specializes in only one industry, yet they act like they have all the answers. It is easy to fall prey to false enthusiasm.
I think the stock market is fun, exciting and risky. I love investing and hope I can bring some benefit to your portfolio. Please keep the feedback coming. Even if I can’t respond to all the emails and comments, I often incorporate your ideas into my analysis and research. I always want to know your thoughts.
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Hi Hilary, I have in a money market $75,000 of my daughter's money. She is eighteen years of age and I would like to make a wise investment for her future, if there is such a thing. I am not a wise invester, but I would like to put her money into a mutual fund as it is not so risky. What would you recomend. If so which stocks or mutual funds would be your recomendation. Thanks Joe D
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Hillary, I have never written to anyone about finances but I read your blog today and would like a squestion addressed if you have the time. I have invested with 5 Fin. advisors and 3 brokerages. I have 520k sitting on the sidelline since around the 4th of march. ie loosing 34k. Thank God I am not in today or it wuld be another $10,085.
I did this last year ie put everythilng into cash and got back in stocks in Aug. and I have the feeling this is generaly how it works. The mkt. dumps around this time of year for whatever reasons and is at its lowest in the summer ie July, Aug. and starts it recovery from their.
I know this is not a hard fast rule but generally this is what has happened for the last several years ie from the Nazdec and Dow charts. It seems to me that this can elliminate a lot ot risk and gets possible the highest returns for the year. So what do you think of this method ?
signed can't take ride. Jim -
Hello Hillary Kramer!
I really appreciate you taking the time to share your knowledge about this very tricky industry that is very complicated to understand and make not so good decisions. I am 19-years-old and a sophmore in college. I do not have a lot af money but think I may have enough to get the ball rolling. I have decided that I wanted to start investing my money right now to have greater financial success in the future.
I know it is impossible for you to answer to everyone's questions. however I would like to know where do I begin? how much money do i need? and wat kind of stocks should i buy (specifically)? and what basic knowledge should i have about being a stock holder?
Thank you in advance for the support and wise suggestions.
Codi-Ann -
Hi, Hilary Kramer;
I understand that as a general rule, stocks with moderately above average growth rates and reasonable valuations are the best buys. Statistically, high growth stocks are usually over priced and have a harder time meeting inflated investor expectations.
The information went on to explain that first, to look for is stocks price earnings ratio compared with it's projected total return. I heard a good stock would be in Sirius Radeo; true? If so, how to begin investing in this one.
I understand that a well balanced portfolio might include a couple of industrials with 9% growth rates & 3% yealds, selling at 17 P/Es. (Please explain what these are, I have no idea.)
Also, can you tell me anything about Tech stocks or any I could get into without too much risk involved on a low budget; money I wouldn't have to wait years to draw on or sell if the need arises.
I want to have some reccomendations from you on the various ones you could reccomend to me that are of a lower risk to invest in.
9/21/08 12:40 AM